DSME factory workers agree to take reductions in salary

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DSME factory workers agree to take reductions in salary

Employees of Daewoo Shipbuilding and Marine Engineering have agreed to a salary reduction as part of cost-cutting measures at the cash-strapped shipbuilder.

About 98 percent of the company’s 10,265 workers agreed to forgo part of their pay on Tuesday, including all of its 36 executives, whose salary will be slashed by as much as 40 percent. About 97 percent of the company’s 4,135 office workers and 98 percent of 6,094 factory workers agreed to a 10 to 15 percent cut. It’s the first time DSME factory workers have opted for a salary cut.

On March 29, the company’s CEO, Jung Sung-leep, said he would give up 100 percent of his salary and encouraged employees to do similar. Last Thursday, the labor union of the shipbuilder agreed to a cut.

DSME faced public criticism for its lackluster cost-cutting efforts after Korea Development Bank and the Financial Services Commission unveiled a 2.9 trillion won ($2.5 billion) bailout plan in March.

As of Tuesday, the National Pension Service, a major holder of DSME’s corporate bonds, has yet to make public whether it will agree to the new rescue measure, which would convert 50 percent of its 388.7 trillion won in bonds to equity.


By Choi Hyung-jo

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